Harvard faces ‘fundraising crisis’ as donors cut ties over protests

Harvard University has experienced a $151 million drop in fundraising for fiscal year 2024. That represents a 14% decline compared to last year and marks one of the largest decreases in a decade.

Breaking down the figures, contributions to the endowment fell by $193 million from the previous fiscal year. However, the university benefitted from an increase of $42 million in current-use gift donations.

Endowment gifts are critical for Harvard's long-term financial health, as they fund scholarships, research and operational costs. Unlike current-use gifts, which can be spent immediately, endowment contributions are preserved, with only their investment returns available for use.

The decline in endowment donations raises concerns about Harvard's ability to expand programs in the future.

The Crimson, the university's newspaper, labeled the issue as a "fundraising crisis" for Harvard , noting that several billionaire donors have publicly severed ties with the university following pro-Palestinian protests and encampments that engulfed campus grounds.

The university also faced an abrupt leadership shakeup, with now-former President Claudine Gay resigning in January amid controversy over her handling of antisemitism on campus and allegations of plagiarism .

Philanthropy accounts for 45% of the university's revenue. Current President Alan Garber privately warned alumni earlier this year about the considerable decline in contributions, according to The Crimson.

While expressing concern over the current figures, Garber indicated there are signs of improvement. He noted that donors are "reassured by the direction" the university is taking and are "relieved" that the current academic year has been "quieter" than last year.

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